Angle Explains: Borrowing rates proportional to collateralization
Angle Explains: Borrowing rates proportional to collateralization
A month ago, DanRobinson shared this idea of making a lending protocol where borrow rates are proportional to collateralization. Looked at it in my free time and found an implementation that could work in the case of a stablecoin protocol like Maker or Angle.
First, I am not saying that having collateralization-dependent interest rates is game-changing idea. As rightly stated by @RobertLauko, it’s not even sure that higher borrow fees incentivize people to repay their debt earlier
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